Fed Drops 'Patient' Language From Statement

WSJ's Jon Hilsenrath discusses the Federal Reserve's latest rate policy statement, which drops the word "patient" and opens the door to a rate increase in June or later. Photo: Getty

This transcript has been automatically generated and may not be 100% accurate.

... John Hills unwrapped John taken away ... and I can see it added the ... statement didn't open the door for the Fed to have that debate and any debt rating in a trade but there are many ... I know ... what they're putting out today the most affordable and that ... the data is revising down its head that were taken to ensure it can be ... at the end of this year the other twenty ... eight and twenty seven they provide them beat estimates by about a half percentage point ... the story today about the Fed is taking a patient and take like three the year ... they may want to get started ... probably be moving ... forward he said it had expected to ... that's ... that's that's the thing we're expecting on looking at the Y inherited says ... Palmer remains on likely to increase rates at the April FOMC saying ... aam and so that that's not going to happen and then it's on a device that would only be a few weeks late ... so we could be looking for work or maybe ... and you know what the Fed has been saying for awhile that with that whether it ... or does it matter that much is ... really what matters is that how ... they're going to want to get started in the story today that ... they're going to do what ... they wanted it ... to ... work ... again ... that to reviving Gallagher at MIT ... for information in a row in the coming year or two ... for instance ... they ... expect inflation to ... be between one percent one ... percent ... to be under one percent ... appreciated underperformed for him at that ... that that that the typical looking to start raising rates to what it really ... confident that inflation is returning to the two percent ... provide Tuesday at its forecasts ... going down the fret ... and then the D C and ... delights us this question is who is in choosing soon I like ... to say that ... we'd see a growing season and whether they wear any sentence and noted that the body with ... people thought that I'm ... sure we have been discovered that I did my ... dad to see what the Fed to hold off on a trade group ... he voted for it to get it going I think that he was happy with ... this evidence that the that that that that ... that that that that is over ... the judges at the this that this is a big one after opening the door really confident that inflation has gone back to ... that ... still it's on my loneliness he mentions the inflation number being a target for the set with or any other signs of the dependency versus the dependency for for guidance ... they didn't get updated it a day ended with them ... bet for Ted Allen had forecast to grow up and that is evolving ... and it's really important ... but they ... are right then Inflation was that the Fed revise their ... growth forecasts ... for this year ... unemployment ... will go and it would be a mother ... the two ... story writing that the unemployment rate forecast ... but at a time ... I won't be paid the unemployment rate and get in the longer run ... four ... inflation pressure ... it didn't end of the longer run ... don't worry ... targeted ... that that that day ... five percent and five ... two percent to in other words ... a fifteen ... thousand which is only war were ... to go even lower before it started about inflation ... there's more breathing room ... that the police dept ... there are still ... one now and now he's installed signaled no will focus on that and Jones did to the Ferguson anyway on the strength of it all up because we have seen a real pick such a move that money all the greenback and I despite definition ... de Flexion the pols Left Wall ... they don't mention that our ... but there was a reference to ... getting the fourth grade ... we're taking today that to help record ... the fact that the game the dollar has fallen ... ok great stuff as always John Hills unwrapped we appreciate time ... again about struggles to to to more stores on the will Street gentle spent a lot what would you think of that at last the less you our list ... as well as a second time and so that's that's pretty interesting and DVD than anything as John said ... there's something in that for the Colts and there's also something in ... it for the doves hello wiring that ... perhaps we'd be moving too quickly and and stifled growth but I think ... definitely a love for the financial markets to chew on any and now it's ... easy chain is as it enters a possibly even Layton and that is the isthe Tau that is up about fifty point seven seven hundred and seventy point move which he's worthy worthy quite a big moves that ... on the summit some massive miscalculations of the consumer the other ... doesn't it make them really down quite a lot if no one along an hour up a little and got a pretty good that's a very precise ... the headlines ... of mega I'm I'm looking at this time I'm thinking it's been beyond ... Janet Yellen has been through this trouble While noun is the day we will communicate ... the timing of this unanimous decision twice in a row does that's a few very good consensus building ... this is a lot of ... law because the metric ... I think it's it's more about of being able to speak at both sides of him not defined by my say so ... um so evil to lead the Fed has told us that they're concerned about inflation the revised growth forecasts down yet ... the structural rate of unemployment is also lower ... so that's a hawk signal vs and of signals at work and that GDP and inflation growth ... so what it's doing is giving the Fed's flexibility to be able to react based on the details were talking that earlier ... not tied to some artificial they not practice my official for guidance but really the incoming data ... and interpreted as the need to in order to make decisions about slowing everyone to agree ... that they can later agree ... right ... everyone can agree that light up a ... commanding eight ok ... but we bought Josh and some of the Wall Street John all he has the Fed's economic forecast Annie's can to join Islam tells all about that Josh would be gone ... yet one John Cochran a little bit of it but basically we see their forecasts for economic growth and inflation come down a little bit for this year ... now with the inflation forecast in particular what's really important is what it does after that ... we know inflation is due to be really low this year because of what's already happened if gasoline they really just updating their forecasts to reflect what's already happening ... and so I think the key thing is when inflation does next year the state coming back ... pretty close to their target they haven't in a range of ... one point seven one point nine percent their goal is for two percent ... said they expected to come back toward the target list as long as they still have that expectation I think ill be able to get an agreement to raise rates the need to see that ... inflation moving back towards that goal and for now they're still saying that happened next year want to jealously that they have a job on the promises of info for Estonian full cast off them that this um very precise measures that they use to be both silently that we'll be four or five percent NEW sabi between one point seven one point nine percent ... it's very precise and company were expected to come in like battle we just expect ... a lot all tweeting has as it gets nearer term XTF ... he's deftly expected to move around a lot of the kids go to next year but the key thing is really the direction ... they mean no inflation is too well right now that they think it's going to head back ... toward the target ... as long as they expect that inflation to move toward the target you know whether or not it goes from zero point eight one point seven or zero twenty one point nine ... that doesn't make a big difference what matters is is it's heading back with a target that's that gives them the rim to raise interest rates if the state I decided it out later this year ... the great stuff thank very much still to some or all the Wall Street analysts have a go and write rollout up now ... and now that that was up one hundred and seven points over the moving up that so was I was down along now it's up all of which is a ... it's a pretty rigorous rates medical staff that has a forty one of the tikka like ... nutmeg ... these these inflation writes a nice growth rates wising immigrant for being trimmed back ... as the economy lost its ability to get you into any mode showdown on a real set of push and a drive for that it doesn't seem is nothing like I'm I'm back to the late nineties um it with the was is fantastic walk of seven percent growth than four times why ... would know when the US ... that's right that we are certainly a moral better than we were just a couple years ago ... and so what the Fed's looking at is not that well is that China types of growth rates but what is sustainable for developed economy ... so you know looking a kind of a two to three percent growth rate for this year the GDP is actually a good thing ... aam but the Fed's also been looking at is wage pressure wage inflation that's why the unemployment number is so critical ... aam once you start to approach that full employment level don't you upward wage pressure which will then pass through to inflation ... so I certainly think that even though the inflation numbers look loan now that's probably transitory from the oil price as I and we do think that is to get wage pressure with this low unemployment rates ... you're going to see some past its prices but is also one of the Fed's forecast for next year ... tablets with ... he really does have a lot for a much will all be back ... at two twenty five for the Fed press conference when the Fed to chat Janet Yellen will answer questions from the Financial quest ... process you would be peppered with them ... we will be that to get you in some analysis after it